1 Road to Riches; Marketing Organic Products. 2 Why should I consider growing Organic for Farmers...
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Road to Riches; Marketing Organic
Products
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Why should I consider growing Organic for Farmers
Markets? Organic market segment fastest
growing 15 to 21% / year, rest ~ 3% Tiny > 3% market, EU ~ 35% market Demand exceeding supply, imports by
$200 million
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Organic vs Conventional Organic food sales
in U.S. grew to $16.7 billion in 2006
Growth rate was 21%
Total food sales ~ $600 billion
Year Sales ($ million)
Organic Food Growth (%)
Total Food Sales
($ million)
1997 3,566 -- 443,724
1998 4,272 19.8 454,071
1999 5,043 18.1 474,678
2000 6,104 21.0 498,379
2001 7,359 20.6 521,831
2002 8,624 17.2 530,612
2003 10,381 20.4 535,406
2004 12,250 15.3 544,141
2005 13,800 15.7 556,791
2006 16,718 20.9 598,136
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Organic fruits and vegetables $6.7 billion, 39% total
Growth rate was 24% in 2006
Projected to reach $8 billion when 2007 figures reported
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USDA Certification regulations 2002
Grown without synthetic pesticides or fertilizers, 36 mo wash out period. Animals - outside
Grown according to Organic Plan
Audited by 3rd party
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How we did the study Developed 10
questions, 4 demographics
English and Spanish 3 student
interviewers Table, University
Banner, clip boards, souvenir cups
Offered to read as needed
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Location of market
(# in survey)
No. Vendors
Est. Sat. Customers
Est. Sat. sales (total)
% Hispanics
Eureka Springs (79)
14 220 $1,850 --
Springdale
(101)
12
to 15
200 $2,000-
$2,500
15%
Fayetteville
(125)
> 50 ~3,000 $20,000 1 to 2%
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What did we Learn? > 300 respondents Most, > 60% had
graduated from college, 10% professional or PhD
Compared to10% of AR population at large graduated from college
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In addition to the volume of sales, Fayetteville had the highest % PhD’s and professional degrees
Eureka Springs the greatest % BS grads
Springdale had greatest % High School or GED’s
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Older 41% > 56 years. Older
>89% were white, Hispanic 3+% Asian 3-%
63% female 60% BS degree or
higher.
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Do Current Farmers Market Customers Buy ORGANIC? 77% said at least once or 2x per month 39% said they been buying it for 7 years or
more 77% buy organic fruits and vegetables.
Poultry – 3% 42% said they are buying organic at
Farmers Markets. 20% re health food store
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Perceptions and Beliefs; Organic vs Conventional
80% said they would buy more organic if priced similar to conventional
70% said “organic” is different than “natural”
72% said organic foods were “more safe” than conventional. 23% said “as safe”.
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Why Consumers Buy Organics Free from chemicals 36.4% Better Nutritional Quality 16.1% Better Taste 12.8% Environmentally friendly 10.1% Other 3.3% Fewer Harmful Bacteria 2.0%
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Brown, 2002, review markets1940 – 2000
# 1) Quality of offerings, 87% rated good to excellent, 98.5% much better quality than retail
#2) Direct contact with grower/farmer
Support for local agriculture
Convenient/ atmosphere
Lowest concern for price
Support for organic
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What Concerns Consumers about Conventional Food?
A) Pesticides 45% B) Negative Environmental Impact 9.8% C) Genetic Modification (GMOs) 9.2% Circled all answers 7.8% D) Nutritional Value 7.5% E) Harmful Bacteria 6.2% F) Other 3.6%
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Shop at Farmers Markets because “I Believe most
strongly in” Support Local Farmers 42% Fresher Produce 24% Better Quality than Retail Stores 9.8% Farmers Market Foods are Safer 4.2% Support Fair Trade 1.3% Other 1.3%
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Customers at NWA farmers markets are well educated, females with money
More than ¾ of these customers are frequent organic food buyers
The organic food they purchase (prefer) most is fresh fruits and vegetables
Less than ½ of those customers are purchasing a majority of their organics at farmers markets
The market for ORGAINC is there but is it worth it?
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OK. Not Certified Organic Creative Genius Artisan re beef in NE Grass- fed Natural
What do customers want? (hot topics) Know the farmer – trust, keep money local, Anti – (Big ) Business Care of Environment NO to pesticides, synthetic fertilizers, hormones, antibiotics, YES to animal welfare, outdoors, fresh, natural
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Artisan Artisan – a person manually skilled in
making a particular product. Artisan farming is farming in harmony with livestock, land and nature.
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Natural – Grass-fed Texas longhorn – tell the grass fed story,
the way nature intended Many grass-fed Comments re no hormones, antibiotics All Natural
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Marketing Marketing – younger shoppers (Xers) –
product must have a story – romanitize it. Don’t have to agree. Just give them what
they want and don’t argue. You don’t have to grow – get someone else
do it.
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Organic Workshop May 13- 14. Mt Sequoyah Conference and
Retreat Center May 15-16. Winrock Rockefeller Institute,
Morrillton Will cover organic horticultural production. Contact; Heather Friedrich; 479/575-2798 [email protected]
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